A member is someone who has given his consent to have his name listed in the membership registry or who owns shares of any company. how to buy shares at capitec To qualify for membership, you must be able to sign contracts.
There is a misconception about attainment of membership of any company (Co) and who a member is. Do you find yourself in the same situation? Majority of people perceive that a person who holds the shares of a company is a member. This is not 100 percent accurate because a person can be a shareholder but not a member.
A member is a person who has allowed his name to be listed in the membership register. You should be competent to enter into contracts in order to qualify for membership. You can become a member in several ways:
1. Subscribers of the memorandum become the original members of the company on the date it was founded. If you subscribe to it, then you become a member. You will not be required to submit an application for membership and the entry of your name into the register of members.
2. You can become a member if you agree to buy shares that are qualified or if you accept the appointment as a first director in a public company.
3. When you apply for shares and you are allotted the shares, then you can get your name listed in the register of membership. By getting your name on the register, you acquire membership.
4. The shares of a publicly traded company can be freely transferred. If you buy shares on the open market from someone and then have them transferred to your name through an instrument called a share transfer form, the name of the person who sold you the shares is removed from the membership register and replaced with yours. This means that you acquired membership through transfer of shares.
5. By succession, you can become a member. You can inherit the shares of the deceased, insane or insolvent member by only producing legal evidence of her entitlement and get your name listed in the register of membership.
6. By converting your warrants to share certificates, you can become a shareholder. Once you've requested the conversion, and it has been accepted, you will be listed in the membership register.
7. When you obtain allotment of shares for a consideration other than cash, then you attain membership if only you get your name listed in the register of membership. If you accept shares in exchange for services rendered or property sold, you will be a member.
8. A court order can make you a member. Your name can be listed in the register of membership as per the order of the court.
9. If you are the nominee of an equity shareholder who has renounced her rights, you can have your name entered in the membership register.
10. You become a shareholder of a company if you have debentures, and you ask the company to convert the debentures into shares.
11. You can also become a member by acquiescence, or estoppel. You can achieve membership by allowing your name to be listed in the members' register even after disposing of your shares, or by convincing others that you are one. You'll be estopped from denying the fact that you are a member thus you become responsible for the liabilities of membership.